It’s the latest attempt by the president to cast a partisan frame around a crisis that has ravaged much of the country with little regard for political affiliation.
Trump has vacillated on whether he wants to give states a lifeline or not. On Twitter last week, hehe looked forward to working on another federal package “with fiscal relief to State/Local Governments for lost revenue.” But later in the week, he described the issue in partisan terms, saying that “the states that seem to have the problem happen to be Democrat.”Such comments have sparked a broader debate between Democrats and Republicans over how various states interact with the federal treasury.
He relented somewhat Monday on his stance about overall state aid, telling Fox News Radio’s Guy Benson that “there probably will be another state and local funding bill, but we need to make sure that we achieve something that will go beyond simply sending out money.”The GOP focus on a few states with underlying fiscal issues is misplaced at a time when all states are suffering financial hardship, said Ray Scheppach, a former longtime executive director of the National Governors Association.
New Jersey Gov. Phil Murphy said his state could begin experiencing a cash crunch in a matter of weeks, describing the situation as a kind of “armageddon” that only the federal government could prevent.“The alternative is not bankruptcy,” Murphy said Monday on CNBC. “The alternative is we will gut the living daylights out of the very services that our folks now are desperately relying upon in what is the biggest health-care crisis in the history of our country.
That is equivalent to the amount state governments will probably need to cover their shortfalls over the next two fiscal years due to the coronavirus, according to a research paper by the left-leaning Center for Budget and Policy Priorities.
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